The Tamil Nadu Rice Mill Owners Association has declared a state-wide strike for July 16 in protest of the imposition of a GST of 5% on essential goods including pre-packaged rice and pulses.
The association's officials told reporters on Thursday that they wanted the GST on rice, which is primarily consumed by people in Tamil Nadu, Kerala, and Andhra Pradesh, to be abolished. As all of the members will take part in the agitation, they continued, around 4,000 rice mills throughout the state will stay closed on that day.
The decision, according to M Sivananthan, state secretary of the organization, will drive up the price of essential commodities. The cost of rice and pulses will increase by at least 2 to 3 per kg.
People in the nation "could not bear the burden put on these commodities at a time when they are already trying to mitigate their wages and the ever-increasing price rise of essential commodities due to the effect of the lockdown enforced for more than two years during the pandemic. Therefore, the announcement should be reversed right away," he stated.
To ensure cleanliness and hygienic conditions, the department of food safety is giving traders instructions that the products must be packed in packets. However, he continued, it is unfair to impose tax by claiming that these are sold in packages.
On July 12, the officials met with state finance minister Palanivel Thiagarajan, who gave them the assurance that he would bring the matter to the GST council's notice. He promised to address the matter at the upcoming GST council meeting, which will be held in Madurai, Sivananthan added.